US oil hits 3-1/2 month low under $100 on supply concerns

Monday, 21 Oct 2013 | 2:37 PM ETReuters

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Oil prices fell on Monday, with U.S. crude breaking below $100 a barrel for the first time since early July, as U.S. inventories rose.

Seasonal refinery maintenance has cut U.S. crude oil demand, widening the premium of Brent crude to U.S. oil futures to around $9.70 a barrel. Data from the U.S. Energy Information Administration for the week to Oct. 11, which was delayed until Monday by the government shutdown, showed a 4 million barrel build in domestic stockpiles for the week.

After 14 straight weeks of decline, stockpiles at the Cushing, Oklahoma, delivery point for the U.S. oil futures contract, rose 366,000 barrels in the week, according to the EIA data, which confirmed reports last week by industry intelligence provider Genscape and the American Petroleum Institute last week.

Investors will also scrutinise delayed U.S. payrolls data on Tuesday for further clues on demand in the world's largest oil consumer.

Brent crude futures for December delivery fell by 30 cents to under $110 a barrel. Last week, the contract lost 1.2 percent, its first weekly loss in three.

U.S. crude oil futures for November delivery, which expires at the end of trading on Tuesday, settled off $1.59 at $99.22, its lowest since July 3rd.

Oil prices were supported by a weaker U.S. dollar, which fell to its lowest level since February on Friday on expectations the Fed will have to delay scaling back its stimulus following the U.S. government shutdown.